In May 2023 Skipton BS launched a scheme allowing first time buyers and renters who haven’t owned a property for the last three years to purchase their own home with no deposit – essentially, lending up to 100% of the property value.
This scheme is called ‘Track Record Mortgage’ and was introduced by the lender to help more people achieving their dream to become homeowners.
This scheme came with a few criteria that had to be met, just to name a few – a good track record in rental payments over the last 12 months, no missed payments in the six months before the application and a maximum mortgage term of 35yrs.
One of the main characteristics was for the mortgage payment to be the same or less of the average of the previous six months rental costs – unfortunately, considering the current interest rates, this often meant that the maximum achievable affordability would significantly drop even if the income of the applicant(s) would have been enough to borrow more (under a standard mortgage product).
But there is some good news, definitely making this mortgage product more attractive.
The changes were made by Skipton BS very recently, on the 2nd of September 2024, which will increase the opportunities for more people to become homeowners.
The main changes are the following:
- Increased allowance around the monthly mortgage payment that, in some circumstances, can be stretched to 120% of the average of the previous six months rental costs
- Increased available mortgage term with a maximum of 40yrs (allowing you to reduce the monthly payments, and therefore potentially increasing your affordability)
- New Build Flats & Houses acceptable under this scheme
- Available to use in conjunction with a Shared Ownership Purchase
The above changes mean that this Track Record Mortgage has now opened the doors to many more buyers and type of dwellings, increasing the chances for more people to starting a new chapter of their lives – in their very own home.
Whether you looked into this scheme before but felt defeated by the outcome or whether you are thinking about buying but don’t think you have enough aside to do it – it’s definitely worth having a chat about this to check your options, you might not be as far away from making your dreams come true as you think you are!
If you want to know more about this, feel free to contact us to see if this scheme could be suitable for your circumstances.
